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CRM Total Cost of Ownership Analysis

  • Author: Hans Noort
  • Create Time: 02/26/2011 13:35:44
  • Last Update Time: 03/14/2011 13:36:23


Executive Overview

The way companies use and pay for customer relationship management (CRM) applications is changing. Moving from a predominantly perpetual license-based system, where companies paid a large up-front sum and then smaller annual maintenance fees, CRM software providers are now moving towards monthly or annual subscription fees to access CRM software on the Internet.

The various pricing schemes can create confusion among buyers as they try to assess the total cost-of-ownership (TCO) of different CRM services priced under various schemes. For example, there are still several companies offering license-based pricing models. Also, some companies offer both a subscription option in addition to a perpetual license option. The following analysis provides a comparative price analysis of lead-ing CRM providers. It takes into consideration several costs, including user license or subscription costs, as well as potential server licenses and other additional cost considerations such as mobile access to the CRM data and system.

In some instances, maintenance of the system is an additional charge to consider as well. Hardware costs, such as servers, security firewalls, and other associated costs such as human capital, which are needed to maintain these systems, have not been included in this cost analysis. This is due to the fact that several of the CRM solutions listed here are offered under a software-as-a-service (SaaS) or cloud-computing model, and hardware is not needed to run these systems. Instead, this paper will focus mainly on the fees associated with licensing and deploying the following CRM offerings. All price information is sourced from reputable web sites and refer-enced throughout the analysis.

CRM Vendors Considered 



Sage SalesLogix

Microsoft Dynamics CRM  


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